The two are selling their rights in a residential real estate project in Chennai for $45.5 million.
Property and Building Ltd. (TASE: PTBL) and Electra Ltd. (TASE: ELTR) have informed the Tel Aviv Stock Exchange (TASE) that they are selling their rights in a residential real estate project in Chennai, India for $45.5 million (NIS 160 million). The first stage of the deal is projected to generate $6.5 million in cash flow for the two companies, which they will share equally. When the deal is completed, the cash flow will amount to $21 million for each of them.
Property and Building and Electra own 90% of the rights in the project in equal shares through a joint company. An Indian partner owns the other 10%, and is now buying the Israeli companies' shareד. Electra Real Estate estimate that it will post a $5 million (NIS 17 million) loss on the deal in its second quarter reports, while Property and Building expects a $4 million net profit (NIS 14 million).
The project includes 2,200 housing units, plus land for commercial uses. The first stage included construction of four residential buildings, most of the apartments in which have been sold, and three more buildings in the initial development stages.
Published by Globes [online], Israel Business News - www.globes-online.com - on June 19, 2017
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Chennai project photo: PR